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Creating a Gig Pact

A gig pact is a representation of how usual employment agreements are made. This can be used for making a freelance contract, freelancer agreement, independent contractor agreement etc. on the blockcain.

Typically, a work contract of this form is drafted with the terms put in a piece of paper. With ChainPact, we will be assuming the real-world conditions are taken care of by the parties off-chain. So, the Gig pact really is just a periodic payment agreement that escrows in the supposed payment amount.

Let's assume Bob is a web-designer and wants to work for Alice, the employer. The pact will represent an example workflow of the steps in this setup

Note: The validity of gig pact in a court is jurisdiction dependent and we don't intend to replace any part of law here.

Either parties, or anyone else, can "create" the pact with the parameters. Before starting, ensure you have enough balance on the wallet to pay for transaction.

  • Alice drafts and enter the details of the pact
  • Alice uses "Sign as Employer" option to put in her wallet's signature on the pact, while also staking the "Pay Amount"
  • Bob signs the pact using "Sign as Employee" option
  • Alice starts the pact, after which it becomes ACTIVE
  • Alice approves payment that reaches Bob's wallet directly
  • Alice decides to terminate the pact
  • Bob acknolwdges the termination, and Alice reclaims staked amount, after which the pact reaches its final state ENDED

Connect wallet to the dApp

For the sake of this example we will be using Avalanche Fuji testnet. Other supported networks can be found in the Supported Networks section. Visit and click on "Connect Wallet". This will prompt you to approve connection from your Metamask wallet, or send you over to Metamask's install site.

connect metamask connect metamask approve
connect metamask approve You can also use WalletConnect to sign in using a wallet app on your phone by scanning the QR code shown on clicking "WalletConnet". Though sometimes this causes issues if you don't have the desired network already present in the list of networks in Metamask app

If you don't have enough test balance for this example, you can go to Avalanche Fuji testnet faucet and get some free coins.

After having connected the wallet to the app, you will be greeted with the welcome dashboard. Feel free to rename it from Anonymous to "Alice"

alice dashboard

Creating the Pact

Click on Create a Payment Agreement on the dashboard and you are presented with a form to enter the parameters. We enter the name "Web design by Bob", Bob's wallet address as employee wallet address, Alice's address as the employer's address.

For the pay amount we can choose a currency. Since Alice wants to make the payments of 10 USD with the USDC stable coin, we choose USDC from the dropdown. This payment will be made weekly, so we choose Pay Schedule as 7 days.

Drafting Gig pact

Further, Alice decides to add some textual information about the scope of this agreement. This is stored locally on Alice's browser and not synced with ChainPact, Blockchain or any other service. So this remains private. One way to share that would be to use the Email share option after the pact is deployed.

Next, we are presented with a pre-flight check screen to verify the details before submitting it to the chain. We click on "Looks Good - Deploy" to submit and create the pact

Pre-flight Gig pact

Signing and locking funds

Alice and Bob can sign it in any order - Bob first or Alice first. But since Alice is the one supposed show that she has enough funds to support the first payment, Bob may only agree to complete the gig work after Alice stakes in the first payment.

The pact is now created and Alice needs to sign it from her end. While signing the pact, the agreed upon pay amount needs to be locked in to the pact. Alice ensures that she has more than 10 USDC in her wallet by clicking on the balance indicator on the top right.

Drafting Gig pact

Alice proceeds to sign the pact by clicking on "Sign as Employer". The app presents a popup containing the core details of the pact. The hash of this transcript must be signed by both parties. This signifies clear acknowledgement of the pact. She verifies the details presented on the popup, and proceeds to sign, and the submit the signature.

Sign As employer popup


Alice then shares the url for the pact, that now lives on blockchain, to Bob for quick and easy access. Bob receives the latest status of the pact and proceeds to sign the pact as well. Drafting Gig pact


On the course of the agreement between Alice and Bob, they need to take several actions to fulfill this payment agreement. Following actions can be taken on the pact

  • Start Pact: Alice can start the pact whenever the gig is ready to begin. Once started the pro-rata payment measurement also begins. Meaning, if the pact was started today, in 3 and a half days, half the payment (i.e. 5 USDC) would be the assumed payment due
  • Approve Payment: Alice can use this option to transfer funds through the pact to Bob. The payments are made in the curency of the pact.
  • Pause: Either of the parties can use this option to stop the pro-rata payment calculation clock. The duration the pact was paused is subtracted while calculating the due payment in next courses of actions and milestones on the pact.
  • Resume: Either of the parties can use this option to restart the pact. The pro-rata payment clock begins counting again.
  • Resign: Bob can use this option as the employee to break off the pact. As soon as this option is excercised, part of the stake amount minus the pro-rata payment at this point, is refunded back to the employer. The pact state changes to RESIGNED
  • Terminate: Alice can use this option as the employer to end the pact. Again, the stake amount is refunded to Alice and the pact changes to a TERMINATED state
  • Full and Final settlement: After the pact is in RESIGNED or TERMINATED state, both parties must use the FnF option to indicate sending any remaining amount due to the other party. For instance, say Alice still owes Bob $5, she must send this money to Bob, specifying this amount in the FnF dialog box. The state will change to FNF_EMPLOYER or FNF_EMPLOYEE, then to FNF_SETTLED with this option
  • Reclaim stake - This is the final move by Alice to reclaim the remaining stake on the pact after it is in FNF_SETTLED state